The Time It Takes to Process Phone Orders in a Small

question 13

Multiple Choice

The time it takes to process phone orders in a small florist/gift shop is normally distributed with a mean of 6 minutes and a standard deviation of 1.24 minutes. What
Cutoff value would separate the 2.5% of orders that take the most time to process?

• A) 3.52 minutes
• B) 4.76 minutes
• C) 8.48 minutes
• D) 10.01 minutes
• E) 11.98 minutes

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Definitions:

Edgeworth Box

A visual representation used in economics to show the distribution of resources and the efficiency of trading between two individuals.

Efficiency

Describes the extent to which time, effort, or cost is well-used for the intended task or purpose, often aiming for the maximum output from a given set of resources.

Indifference Curves

Graphical representations in economics showing combinations of goods among which a consumer is indifferent, meaning they have no preference for one combination over another.

Pareto Optimal

A state of allocation of resources from which it is impossible to reallocate to make any one individual or preference criterion better off without making at least one individual or preference criterion worse off.